Consultants: Retail supply in Romania to reach the lowest level since 2005

The modern retail stock remained unchanged at 1.66 million sqm in Romania as no retail projects were opened in Q1 2014, after 95,000 sqm were added to the market in the previous quarter. “Two new shopping centers are planned to be delivered by the end of the year, both developed by the South-African investment fund, NEPI: Vulcan Value Center (35,000 sqm) in the south-west of Bucharest and Shopping City Targu Jiu (27,000 sqm) in Targu Jiu. Therefore, 2014 retail supply in Romania will be at the lowest level since 2005,” reads a study of JLL Romania. The stock in Romania's capital is estimated at almost 890,000 sqm and “the pipeline in Bucharest for 2015 is likely to increase to up to 150,000 sqm, in areas that are currently lacking major shopping centers, and to 45,000 sqm in Brasov, one of the largest cities in the country”. Retail sales registered an 8.3 percent year-on-year growth in Q1 2014, while the non-food sales increased even more, by an impressive 12.3 percent. JLL expects this trend to continue, supported by strong economic growth, the revival of the credit market and increasing consumer confidence. Rental levels for prime shopping centres grew to EUR 60-70 per sqm per month, showing the first signs of recovery of the Bucharest retail market, according to JLL. The highest rents are found in two shopping centers in Bucharest, namely Baneasa Shopping City and AFI Palace Cotroceni. Irina Popescu, irina.popescu@romania-insider.com (photo: Romania-Insider.com)